Friday, August 23, 2024 Canadian Pacific Kansas City (CPKC) announced its plans to resume railway operations in Canada following the directive from the Canadian Minister of Labour. This directive, under Section 107 of the Canada Labour Code, instructs the Canada Industrial Relations Board (CIRB) to enforce final binding arbitration, allowing operations to recommence immediately. “The Canadian government has recognized the immense consequences of a railway work stoppage for the Canadian economy, North American supply chains and all Canadians,” said Keith Creel, CPKC President and CEO.
“The government has acted to protect Canada’s national interest. We regret that the government had to intervene because we fundamentally believe in and respect collective bargaining; however, given the stakes for all involved this situation required action. “CPKC looks forward to welcoming all of our employees back to work to restore our railway to full strength and get back to serving our customers and moving Canada’s trade and commerce throughout North America,” Creel added.
CPKC will comply with the CIRB’s forthcoming orders and is gearing up for a safe and systematic restart of rail services. Updates on the timing will be shared after the CIRB’s decision is received. The railway employs about 3,200 locomotive engineers, conductors, train and yard workers represented by the Teamsters Canada Rail Conference (TCRC) – Train & Engine, and approximately 80 rail traffic controllers under the TCRC – Rail Canadian Traffic Controllers, all based in Canada.
This announcement includes forward-looking information about CPKC’s negotiations with labor unions, potential service disruptions, and overall business operations. Such statements are based on expectations, assumptions, and forecasts, which may not fully materialize. Investors are cautioned against placing undue reliance on these forward-looking statements, which are subject to various risks and uncertainties including changes in market conditions, regulatory shifts, and natural events that could significantly impact operational outcomes.
Further details regarding these risks are regularly provided in CPKC’s filings with Canadian and U.S. securities regulators.
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